Marketing of her brand continues despite legal troubles

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TROY, Mich., Oct. 19 — Martha Stewart, the domestic diva facing a trial next year for her role in a stock-trading scandal, is included in Kmart’s new ad campaign, slated to begin Sunday night.

Kmart officials say nothing has changed in their approach to Stewart and her well-selling line of home furnishings.

After Stewart was indicted in June, a Kmart spokeswoman said the matter was between law enforcement and Stewart.

“We still continue to carry her (Stewart’s) product, and it continues to sell very well. There has been no change there,” Kmart spokesman Jack Ferry said.

The “Kmart. Right Here. Right Now.” campaign, complete with re-recorded music of the same name by ’90s pop artist Jesus Jones, has an urban theme and features takes of the pitch people for Kmart’s exclusive product lines — Stewart, Joe Boxer dancer Vaughn Lowery and Latin singer Thalia Sodi.

The campaign, set to debut during the second game of the World Series, attempts to show customers the store is on top of trends. Actors will try to brand the store as “the K.”

“We’re saying that these exclusive brands are available only at Kmart. And there’s just very quick cuts of some of the people who represent the brands,” said Kmart spokesman Jack Ferry.

Prosecutors allege that in Dec. 2001 Stewart, 62, was tipped off that ImClone Systems Inc. would receive bad news from federal regulators. She sold her stock the day before the news became public, sending ImClone shares into a tailspin.

Stewart was indicted on five counts including for conspiracy, securities fraud and obstruction of justice.

Exclusive brands like Joe Boxer and Martha Stewart Everyday have been key components of the company’s strategy to compete with Wal-Mart Stores Inc. and Target Corp. The Troy-based retailer left Chapter 11 bankruptcy protection May 6 after closing about 600 stores and terminating 57,000 employees.